Standing Committee on Twenty-Sixth Legislature Third Session StandingGovernment Committee Services on NOVEMBER 2007 Government Services Report on Bill 2: Conflicts of Interest Amendment Act, 2007 COMMITTEES OF THE LEGISLATIVE ASSEMBLY Standing Committee on Government Services 801 Legislature Annex Edmonton, AB T5K 1E4 (780) 644-8621 [email protected] November, 2007 To the Honourable Ken Kowalski Speaker of the Legislative Assembly of Alberta The Standing Committee on Government Services has the honour to submit its Report containing recommendations on Bill 2, Conflicts of Interest Amendment Act, 2007 for consideration by the Legislative Assembly of Alberta. Harvey Cenaiko, MLA Calgary Buffalo Chair Standing Committee on Government Services Mo Elsalhy, MLA Edmonton-McClung Deputy Chair Standing Committee on Government Services Contents Members of the Standing Committee on Government Services 1 1.0 Introduction 2 2.0 Order of Reference 2 3.0 Recommendations 3.1 Proposed Amendments to Bill 2 3 Appendix A: Explanatory Notes 4 Appendix B: List of Submitters 5 MEMBERS OF THE STANDING COMMITTEE ON GOVERNMENT SERVICES 26th Legislature, Third Session Harvey Cenaiko, MLA Chair Calgary-Buffalo (PC) Mo Elsalhy, MLA Deputy Chair Edmonton-McClung (L) Moe Amery, MLA Richard Marz, MLA Calgary-East (PC) Olds-Didsbury-Three Hills (PC) Dr. Neil Brown, MLA Brian Mason, MLA Calgary-Nose Hill (PC) Edmonton-Highlands-Norwood (NDP) David Coutts, MLA Bridget A. Pastoor, MLA Livingstone-Macleod (PC) Lethbridge-East (L) Alana DeLong, MLA George VanderBurg, MLA Calgary-Bow (PC) Whitecourt-Ste. Anne (PC) Heather Forsyth, MLA Calgary-Fish Creek (PC) Temporary Substitutions* For Brian Mason: For Heather Forsyth: Dr. Raj Pannu, MLA Jack Hayden, MLA Edmonton-Strathcona (NDP) Drumheller-Stettler (PC) David Eggen, MLA Edmonton-Calder (NDP) *Substitution pursuant to Temporary Standing Order 56(2.1-2.3). 1 1.0 Introduction Bill 2: Conflicts of Interest Amendment Act, 2007 was introduced by Dr. Neil Brown and received First Reading on April 18, 2007. The Bill passed Second Reading on May 9, 2007. It was referred to the Standing Committee on Government Services on May 30, 2007. The Committee invited written submissions on the Bill from stakeholders and advertised for written submissions from the public (See Appendix B: List of Submitters). 2.0 Order of Reference Excerpt from the Votes and Proceedings of the Legislative Assembly of Alberta, Wednesday, May 30, 2007: Government Motions 23. Moved by Hon. Mr. Hancock: Be it resolved that the Legislative Assembly refer Bill 2, Conflicts of Interest Amendment Act, 2007, to the Standing Committee on Government Services for the committee’s consideration, review, and comment, and request the committee to report to the Assembly on or before the first week of the Fall 2007 sitting. A debate followed. The question being put, the motion was agreed to. 2 3.0 Recommendations 3.1 Proposed Amendments to Bill 2: The Standing Committee on Government Services recommends that Bill 2, Conflicts of Interest Amendment Act, 2007, proceed with the following proposed amendments: CONFLICTS OF INTEREST AMENDMENT ACT, 2007 A Section 11 is amended in the proposed clause (b.1) by adding “of which the Member is aware” after “proceedings”. B Section 20(1) is amended in the proposed subsection (2) by adding “or any other person” after “Member” wherever it occurs. C Section 21(1) is amended (a) in clause (e) in the proposed subsection (3)(a)(i) by striking out “activity,”; (b) in clause (g) in the proposed subsection (7) (i) by adding “or any other person” after “a former Minister”; (ii) by adding “or any other person who has realized the financial gain” after “the former Minister”. D Section 22 is amended (a) in the proposed section 32.1(5)(a)(i) by striking out “activity,”; (b) in the proposed section 32.1(8) (i) by adding “or any other person” after “a former political staff member”; (ii) by adding “or any other person who has realized the financial gain” after “the former political staff member”. 3 Appendix A: Explanatory Notes Section 11 – Members’ Disclosure Statements In the Proposed Clause (b.1) A Member should only be required to disclose those legal proceedings of which he/she is aware. This proposed amendment would bring the provision more closely in line with the recommendations of the Select Special Conflicts of Interest Act Review Committee. Section 20(1) – Breaches by Members In the Proposed Subsection (2) This proposed amendment would allow a person who has been financially affected by a Member’s breach of the Act to pursue an action against any person, including the Member, who has gained financially from the breach. The proposed amendment would bring the provision more closely in line with the recommendations of the Select Special Conflicts of Interest Act Review Committee. Section 21(1) – Prohibitions on Former Ministers In the Proposed Subsection 31(3)(a)(i) The word “activity” is inappropriate in the context of this provision. An activity cannot be “awarded, approved or given.” This proposed amendment reflects a simple improvement in the drafting language. In the Proposed Subsection (7) This proposed amendment would allow a person who has been financially affected by a former Minister’s breach of the Act to pursue an action against any person, including the former Minister, who has gained financially from the breach. While the original recommendations of the Select Special Conflicts of Interest Act Review Committee did not contemplate claims against persons other than the former Minister, this proposed amendment would bring the provision in line with the restitutionary provision applicable to Members. Section 22 – Prohibitions on Former Political Staff Members In the Proposed Section 32.1(5)(a)(i) The word “activity” is inappropriate in the context of this provision. This proposed amendment reflects a simple improvement in the drafting language. In the Proposed Section 32.1(8) This proposed amendment would allow a person who has been financially affected by a former political staff member’s breach of the Act to pursue an action against any person, including the former political staff member, who has gained financially from the breach. While the Select Special Conflicts of Interest Act Review Committee made a general recommendation that cooling- off periods should be introduced for senior policy officials, it did not address questions of punishment and restitution for violations of the cooling-off provisions. This proposed amendment would bring the provisions in line with the restitutionary provisions applicable to Members and former Ministers. 4 Appendix B: List of Submitters The Standing Committee on Government Services invited written submissions on the Bill from identified stakeholders and advertised for written submissions from the public. The Committee received six written submissions. A list of those who made written submissions follows. Name Organization 1. Debra Evans Private Citizen 2. Jonathan Moser Dow Chemical Canada Inc 3. Duff Conacher Democracy Watch 4. Morten Paulsen Fleishman-Hillard Canada Inc. 5. Heather MacIntosh Sheldon Chumir Foundation 6. Susan G. Durk Prairie Breeze Inn, RV & Camping 5.